The IT major has signed a definitive agreement to acquire US-based Rizing Intermediate Holdings, Inc. ("Rizing"), a global SAP consulting firm, for about $540 million.
Rizing is a global SAP consulting firm with industry expertise and consulting capabilities in enterprise asset management, consumer industries, and human experience management and has more than 1300 employees in 16 countries across North America, Europe, Asia, and Australia. Its consolidated net revenues in the year ending 31 December 2021 stood at $193.8 million."As one of the leading strategic partners in the world for SAP, Rizing will become a critical extension of Wipro's SAP Cloud practice and Wipro FullStride Cloud Services. The combined offering will help clients surface unique business opportunities and new competitive advantages through SAP cloud implementations. It will also help Wipro expand its leadership in oil & gas, utilities, manufacturing, and consumer industries," Wipro said in a statement.
The transaction is expected to be completed before quarter ending 30 June 2022. The deal will require anti-trust approvals under the competition laws of the United States of America, Germany and Canada.
Upon completion of the acquisition, Rizing will operate as Rizing, a Wipro company, under the leadership of Maiolo.
"We are thrilled to welcome the Rizing team to the Wipro family," said Thierry Delaporte, chief executive officer & managing director, Wipro. "Rizing's complementary consulting capabilities and strong client relationships will significantly boost our existing offering, creating one of the most differentiated SAP services in the marketplace. Together, we will be able to expand our presence in high-growth industry sectors."
"This is the next phase of growth for Rizing. With Wipro's backing, we will be able to enhance the value we deliver to our current clients and bring our differentiated offering to a broader universe of businesses, said Mike Maiolo, Chief Executive Officer, Rizing. Combining the two firms will allow us to scale our services and expand our footprint in the market. We are thrilled to join a company that shares our values and vision, enabling us to grow in new strategic areas."
Wipro is a leading global information technology, consulting, and business process services company.
The IT company will report its Q4 earnings on Friday, 29 April 2022. It reported a 1.3% rise in consolidated net profit to Rs 2,970 crore on a 3.3% rise in revenue from operations to Rs 20,313.6 crore in Q3 FY22 over Q2 FY22.
Shares of Wipro ended flat at Rs 529.35 on Tuesday.
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